Kempen & Co 4 th Healthcare/Life Sciences Conference Brussels March 29, 2011
Safe Harbour This presentation includes forward-looking statements. Actual results could differ materially from those included in the forward-looking statements due to various risk factors and uncertainties including changes in business, economic competitive conditions, regulatory reforms, foreign exchange rate fluctuations and the availability of financing. These and other risks and uncertainties are detailed in the Company s Annual Report.
MorphoSys at a Glance Technology Industry s most successful antibody library technology - HuCAL 75 drug programs ongoing Pipeline Profitable, strong balance sheet Financial MorphoSys AG Page 3
Business Model & Strategy Business Model Business Model Innovative, Proprietary Antibody Technology Commitment to delivering superior antibodies Next generation MAbs to be more efficacious Three business segments based on MorphoSys s technologies Partnered Discovery Multiple therapeutic antibody products Generating strong flow of milestones & royalties Proprietary Development Own programs taken to clinical proof-of-concept by MorphoSys Lucrative potential upside AbD Serotec Growing roster of diagnostic partnerships developing novel tests Research antibody catalog business Strategy Use proprietary technologies to develop the broadest possible pipeline of therapeutic antibody drugs, balanced between partnered and proprietary programs MorphoSys AG Page 4
Growing Pipeline Illustrates Successful Execution of Strategy Programs 80 70 60 50 40 30 20 10 0 33 45 52 58 1 2 4 5 8 2005 2006 2007 2008 2009 2010 68 17 75 Clinical Total MorphoSys AG Page 5
Unique & Proprietary Technology for Generating Drug-Quality Antibodies Human Combinatorial Antibody Library HuCAL 2016 Slonomics Fast, precisely controlled library generation Sloning acquisition 2023 New Technology 2029 Patent lifetime MorphoSys AG Page 6
75 Therapeutic Antibody Programs Ongoing MOR103, MorphoSys n.d., Novartis CNTO888, Centocor Ortho Biotech (2 Programs) Gantenerumab, Roche BHQ880, Novartis MOR208, MorphoSys CNTO 1959, Centocor Ortho Biotech CNTO 3157, Centocor Ortho Biotech n.d., Centocor Ortho Biotech BAY79-4620, Bayer Schering n.d., Novartis (3 Programs) n.d., Boehringer Ingelheim n.d., Pfizer OMP-59R5, Oncomed MOR202, MorphoSys 20 Partnered Programs Discovery Pre-clinic Phase 1 Phase 2 Phase 3 Market 37 Programs (incl. 5 Proprietary Programs, 2 Co-Development Programs with Novartis) Progress in 2010 MorphoSys AG Page 7
MOR103 A Novel Anti-Inflammatory Antibody The Target GM-CSF a growth factor and inflammatory mediator The Drug Ultra-high affinity HuCAL IgG1 Clinical Development in Rheumatoid Arthritis Phase 1b/2a trial ongoing in Europe in patients with active RA Completion of enrollment H2 2011, final results H1 2012 Clinical Development in Multiple Sclerosis Phase 1b safety study in MS patients starting H2 2011 Intellectual Property Exclusive license to a US patent covering antibodies against GM-CSF for the treatment of chronic inflammatory conditions US patent on MOR103 composition of matter MorphoSys AG Page 8
MOR208 A Novel Anti-Cancer Antibody The Target CD19 a pan B-cell marker The Drug Humanized, high affinity anti-cd19 antibody Exclusive license from Xencor Comprises a proprietary Xencor modification that leads to rapid and sustained B-cell depletion Clinical Development in Chronic Lymphocytic Leukemia Multi-centre, open-label, multi-dose, single-arm phase 1, dose-escalation study in USA Patients with chronic lymphocytic leukemia, who have not responded to or have become refractory to previous therapies Xencor funds phase 1 trial from $13m up-front payment Final data expected in 2012 MOR208 Anti-CD19 IgG1 (unmodified) XmAb (-) control Rituximab (CD20) Alemtuzumab (CD52) %ADCC 30 Namalwa 20 10 0 60 40 20 0 30 20 10 0 Wac3CD5 SU-DHL-6 MorphoSys AG 0.01 0.1 0 10 100 mab (ng/ml) CLL Burkitt s Lymphoma B-NH HL Page 9
MOR202 A Novel Antibody for Multiple Myeloma The Target CD38 a protein on multiple myeloma cells The Drug High affinity HuCAL antibody Excellent cross-reactivity to non-human primate (tox) Clinical Development in Multiple Myeloma Start multi-centre, open-label, dose-escalation study in Europe H1 2011 Patients with relapsed/refractory multiple myeloma; failure of at least 2 prior therapies Maximum tolerated dose, safety and tolerability, pharmacokinetics and immunogenicity; assessment of preliminary activity Final data expected in 2013 MorphoSys AG Page 10
Partnered Programs Phase 2 Clinical Development Program Partner Disease Target Status BHQ880 Novartis Osteolytic bone disease DKK-1 Early data show stimulation of bone formation n.d. Novartis n.d. n.d. Clinical proof of concept achieved CNTO888 Centocor Ortho Biotech Oncology MCP-1 Two trials ongoing CNTO888 Centocor Ortho Biotech Idiopathic pulmonary fibrosis MCP-1 One trial ongoing Gantenerumab Roche Alzheimer s disease Amyloid-β Study in patients with prodromal AD MorphoSys AG Page 11
Partnered Programs Phase 1 Clinical Development Program Partner Disease Status CNTO1959 Centocor Ortho Biotech Psoriasis Study completed Q4 2010 BAY79-4620 Bayer Healthcare Oncology Antibody-drug conjugate vs. CA IX CNTO3157 Centocor Ortho Biotech Asthma Phase 1 start June 2010 n.d. Novartis Musculoskeletal Phase 1 start July 2010 nd n.d. Novartis Ophthalmology Phase 1 start August 2010 n.d. Novartis Inflammation Phase 1 start December 2010 n.d. Centocor Inflammation/ Autoimmune Phase 1 start t December 2010 n.d. Boehringer Ingelheim n.d. Phase 1 start December 2010 n.d. Pfizer Oncology Phase 1 start December 2010 OMP-59R5 Oncomed Oncology Phase 1 start December 2010 MorphoSys AG Page 12
AbD Serotec Segment Complements Therapeutic Business Antibodies for research and diagnostic markets Diagnostic Antibodies Using proprietary technologies to deliver superior Dx antibodies Future upside via royalties Research Antibodies Catalogue of 15,000+ products & custom HuCAL antibodies Stable and recurring cash flows EUR millions Guidance 2011 2010 AbD Serotec Segment Revenues 22-23 20.22 AbD Serotec Profit Margin ~ 4% 6% MorphoSys AG Page 13
P&L and Guidance 2011 EUR millions 2009 2010 Guidance 2011 Revenues 81.0 87.0 105 110 Cost of Goods Sold 6.7 7.3 Proprietary R&D Expenses 19.3 26.5 40 45 Sponsored R&D Expenses 19.7 20.4 S,G&A Expenses 23.9 23.2 Total Operating Expenses 69.6 77.4 Other Operating Income 0.1 0.2 Profit from Operations 11.4 9.8 10 13 MorphoSys AG Page 14
Balance Sheet and Shareholder Structure Balance Sheet Shareholdings by Investor Type EUR millions 2009 2010 Assets Cash, Cash Equivalents & Marketable Securities 135.1 108.4 Other Current Assets 20.5 24.1 TtlN Total Non-Current tassets 50.55 80.00 Total Assets 206.1 212.6 Liabilities Total Current Liabilities 24.3 21.4 Total Non-Current Liabilities 7.9 5.3 Total Shareholders Equity 173.9 185.9 Total Liabilities 206.1 212.6 Treasury Stock 04% 0.4% Management & Supervisory Board 2% Novartis 6.4% Unidentified 17% Retail 28% Institutional 46% Shares issued: 22,890,252 (Dec 31, 2010) MorphoSys AG Page 15
A Rich Potential News-flow in 2011 H1 2011 US patent granted on MOR103 Double digit EUR million technology milestone payment received from Novartis Commence Phase 1 study of MOR202 in multiple myeloma Release MOR202 pre-clinical data New partner INDs First diagnostic kit based on a HuCAL antibody comes to market Further technology announcements H2 2011 Complete enrollment in MOR103 Phase 1b/2a RA study Commence Phase 1b MS study of MOR103 Clinical data from trial of CNTO888 in oncology* Clinical data from trial of CNTO1959 in psoriasis* Clinical data from trial of CNTO3157 in asthma* New partner INDs New deal(s) based on Slonomics technology * MorphoSys estimates only MorphoSys AG Page 16
Thank You www.morphosys.com Dr. Arndt Schottelius Chief Development Officer Dr. Claudia Gutjahr-Löser Head of Corporate Comm. & IR Phone +49 (0)89 / 899 27-204 Phone +49 (0)89 / 899 27-122 Fax +49 (0)89 / 899 27-5204 Fax +49 (0)89 / 899 27-5122 Email investors@morphosys.com HuCAL, HuCAL GOLD, HuCAL PLATINUM, CysDisplay, RapMAT and AutoCAL are registered trademarks of MorphoSys AG, aryla is a trademark of MorphoSys AG